Here are the details of this case, including the Liquidator comments.
Liquidator Comments
Overview of the Case
On 04 January 2021, Marc Stokes (“Mr Stokes”) caused MSF Recruitment Limited (“MSF”) to make a payment of £50,000 to a third party.
The payment was to the detriment of creditors of MSF and was made at a time when he knew or ought to have known that MSF was insolvent, or that the payment would cause MSF to become insolvent as a result.
In that:
- On 13 November 2020 Mr Stokes informed an Insolvency Practitioner that MSF had no assets and owed approximately £62,000 to creditors.
- The Insolvency Practitioner advised Mr Stokes that he should not incur any more credit for MSF and that he must be aware of his fiduciary duties, and provided a quote to place the company into CVL.
- On 15 December 2020 Mr Stokes signed MSF’s accounts for the year ended 31 January 2020 disclosing shareholders’ funds as (£27,135)
- On 04 January 2021 MSF received £50,000 into its business bank account.
- On the same day £50,000 was paid out of MSF’s bank account to a third party rather than being applied for the benefit of creditors, leaving 39p in the account.
- There were no further bank transactions and on 15 February 2021 MSF entered liquidation owing £75,563 to creditors.
